Providing Security to Real Kiwis Earns Top Trustee Award

Just
this week Gilligan Rowe + Associates Ltd, (through our trustee company
Cornwall Trustees Ltd) was awarded the prestigious ‘2008 New Zealand
Corporate Trustee of the Year' award by the New Zealand Trustees
Association.

Naturally, we're pleased. But while it may be a big
deal in our little world and make us feel pretty good about ourselves
for a second or two, it's only on reflection that the real message
behind this story jumps out.

And that message is all about two things: security and procrastination. Let me explain.

According
to Errol Anderson, Registrar NZ Trustees Assn, "A real strength of this
Corporate Trustee (GRA) is the hands-on commitment from the Directors
through to clerical staff where their integrity and personal belief in
the structure and process provides the client with a high degree of
security."

It's this ‘high degree of security' that I really want
to impress upon readers. It seems like we all want it, but in many cases
never believe that ‘out-of-the-blue', negative, life-altering events
can ever affect us.

It's sad. We see it time and time again; New
Zealanders who want the protection of a business or family trust after a
major financial disaster, relationship split or unexpected life event!
And while we can help some people and protect them from future events,
most often it's just too late!

In short, I believe Professional
Trustees are not meant to be in the ambulance business. To me, we're in
the protection business.

Procrastination and putting off decisions
to set up a Trust can cause pain. Real pain. And it's not just
financial. It can also affect health and relationships. We know because
we get to see it all too regularly.

So, rather than tell you
train-wreck stories about people who get it wrong (hmmm, maybe a good
idea for future articles?), I've decided to share a TRUE good news story
where our client actually did the right thing, made the decision, and
took action.

For privacy reasons, we've changed our client's name in this story...We'll call him ‘Mike'.

Mike
and his business partner had grown their services company to a very
large and successful enterprise in NZ. They had a firm with a
recognisable brand and a great reputation.

Everything was looking
up and looking good. It would have been easy for John to simply believe
that they we're bullet-proof. After all, the company was expanding and
making money.

But he didn't. He knew that in business (and life)
things can come out of ‘left field' which you may have no control over.
So three years ago, he contacted our firm and set up a Trust. Full
financials were completed and all Trust administration including gifting
was concluded.

Along with his business partner, Mike had business
dealings in Australia and gave personal guarantees to a creditor.
Sadly, the company got into financial difficulties (through no fault of
Johns) and John's partner elected voluntary bankruptcy. This
automatically involved Mike and bankruptcy proceedings are presently
underway.

Is Mike happy that his business failed through no fault
of his own? No. Is Mike relieved that he didn't procrastinate and took
action to establish a Trust to protect his assets? Yes!

The relief
came because as Professional Trustees, we understood his situation and
we had a strategy. Next, we implemented the strategy and reviewed his
situation each year for three years. In this case, our client is
protected.

We have an industry in New Zealand that we can be proud
of. So, on the outside while some people might view our job as a
mystery or even stuffy, we know that as Professional Trustees it's all
about helping people to protect what's important.

We have a good
industry full of good and professional people who care. But while we
think we're good, we're not good enough to force you take the first
step.

NEW ZEALAND TAX CALCULATOR

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